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Mon-chu' asked in Politics & GovernmentPolitics · 1 decade ago

Why is the Department of Treasury preparing the bankruptcy filing for Chrysler Corporation?

The U.S. government does not file bankruptcy for private businesses. The business, in conjunction with it's legal counsel, files it's own bankruptcies or any other legal filing. What's up with this? Apparently Obama IS nationalizing the auto and banking industry.

http://news.yahoo.com/s/nm/20090423/bs_nm/us_chrys...

Update:

Enzyte: you need some of your own medicine. The federal govenment does not file court cases for corporate entities.

6 Answers

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  • 1 decade ago
    Favorite Answer

    It's the first step to dictating terms to Detroit.

    GM is next. Ford will be instructed to absorb the other two's assets and workforce on the way to becoming

    the BIG ONE, i.e. http://chryslerfordgm.com/

    Is it just me?

    Source(s): Tales from the Crib http://crabby-king.com/
  • Queech
    Lv 4
    1 decade ago

    Most of these answerer's don't understand the question. You are correct. The federal government's involvement in a bankruptcy goes only as far as (1) being a party with an interest in the proceedings; and

    (2) hearing the case in a U.S. Bankruptcy court. The Deparment of Treasury should not be filing anything on behalf of Chrysler or any other company.

  • Anonymous
    1 decade ago

    Probably because the CEOs of the auto industry flew to DC asking for money from the federal government. Don't ya think?

  • Anna P
    Lv 7
    1 decade ago

    Most businesses don't use our tax dollars. As the superior debtor (first in line), I guess they want to ensure that taxpayer interests are kept in the filing (which is really a reorganization), if indeed this is true. Duh.

    ADD: Jules, great. Ya Betcha!

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  • Anonymous
    1 decade ago

    I don't think you know your history of bankruptcy very well. In fact, the U.S. has extensively participated in many, many bankruptcies. The railroads are an obvious example.

  • Anonymous
    1 decade ago

    After reading the link "you" provided I understood why.

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